Less than a third (32 per cent) of Australians consider financial advice a driver of retirement confidence, according to Vanguard’s How Australia Retires 2026 report, putting financial advice at the bottom of the list.
Respondents were asked about factors that make them more and less confident in funding their retirement and what would increase that confidence. Those more confident said the factors contributing to it included savings and income security as the main driver, in two-thirds of respondents. A similar number of respondents said having little or no debt was a contributor. Financial advice came last on the list of six drivers, with 32 per cent.
“While Australians didn’t typically cite financial advice as a key driver of retirement confidence, our research found that people who receive financial advice are more likely to report higher levels of confidence about retirement,” says Daniel Shrimski, Vanguard managing director of Asia Pacific. “This suggests advice can play an important role in helping Australians feel better prepared and more confident about their financial future.”
Of those who work with financial advisers, 39 per cent have confidence in their retirement plan compared to 21 per cent for those without an adviser.
“The findings highlight the role advice can play in helping Australians navigate increasingly complex retirement decisions. Longer life expectancies, evolving retirement income products, superannuation choices and aged care considerations all contribute to a retirement landscape that can be difficult to navigate alone,” the report said.
Australians also rely on a mix of personal research and informal networks with own research, partners, family and friends were consulted more than financial advisers.
“Our findings support the important role of financial advisers, with those who receive advice more likely to report higher levels of confidence in retirement. At the same time, there may be an opportunity for superannuation funds to play a greater role in helping members navigate retirement by providing accessible guidance and simple, targeted support,” the report said.
Literacy issues cause and financial advisers’ role
Vanguard recommended strengthening financial literacy and retirement planning to improve Australians’ decisions and understanding about retirement.
Shrimski says gaps in financial literacy is a recurring issue with similar findings emerging overseas.
“While it’s difficult to identify a single cause, many Australians tell us they lack confidence when making financial decisions. That’s why we think an important conversation is how to improve financial literacy and capability across the community. Opportunities could include introducing financial literacy as a standalone subject in the national curriculum and improving access to educational resources and tools at different life stages,” he says.
Financial advisers play an important role in helping people understand complex financial concepts, make decisions and plan, but there is still the question of access to proper financial advice, which Shrimski says cost and affordability are frequently cited barriers.
“What is clear from our research is that there remains a gap in financial confidence and capability, and advisers have an important role to play in helping Australians navigate important financial decisions.”
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